The Trump Administration announced today that it is currently seeking to investigate companies connected to Tencent.Tencent is a Chinese tech conglomeratethat owns shares in various American companies including Epic Games and Riot Games; both are games software developers popularized by hits likeFortniteandLeague of Legends, respectively.
These investigations come after sanctions against Tencent regarding its multi-purpose messaging app, WeChat, specifically regarding the approach in collecting data from its users. CFIUS, or the Committee on Foreign Investment in the United States, has confirmed that they have inquired with Riot Games andEpic Gamesto ask the studios about the various procedures the companies have in place in terms of how the companies handle the personal data of American consumers.
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This news popped up around the same time as the US Commerce Department announcing their demands that app stores eliminate the popular video-sharing, social media service, TikTok, and Tencent owned apps like WeChat on September 20th. And while users who have these apps already installed, they may not be usable after the election of November 12th. The Trump administration has yet to go after specific games likeFortniteandLeague of Legends, but only time will tell whether these titles will remain safe.
It should be mentioned thatFortnite’scurrent removal from the both Android and iOS app storesis not connected to these sanctions, but due to an entirely independent legal battle regarding how the game has handled purchases from within the app itself. These sanctions are simply another legal hurdle that Epic Games must navigate during unprecedented times.
While WeChat andTikTok may seemingly face getting the metaphorical boot, it is not likely that these sanctions will affect the existence ofFortniteorLeague of Legends. Both titles are a massive boost of revenue for Epic Games and Riot, and it is more likely that this will lead to a clarification and reworking of how both companies handle data collection. And while the questions within the letters sent out to the companies involved have not been specifically disclosed, ensuring that personal data from users is handle correctly will hopefully be a good thing in the end.
However, this does set an odd precedence in how much power the US has in what media its citizens are allowed to consume. If popular apps like WeChat and TikTok are facing scrutiny to this extent, there is not much stopping thecurrent administration from banning gamesthey deem as improperly handle data as well. The news is still fresh, so the true ramifications have yet to be seen.
